Hi Baghags!
As a collector and reseller, I often get asked how to build a collection of bags that will increase in value over time, and how to make a profit on handbags. Many people are sceptical about this concept, but it’s absolutely possible. I’m living proof!
Let me tell you the story about my very first Chanel bag. When I was about 21, I fell in love with a Chanel Diana bag, somewhere far away in Japan, that I found on eBay. I can’t remember if it was an auction or just the ‘buy now’ price, but I ended up buying it for 550€.
Yup, 550€! For those of you who know a bit about Diana prices, you’ll understand that this was an amazing deal, even then. The bag was around 20 years old at the time, in great condition, and came with the dustbag and authenticity card.
At that time, I was in college, working a crappy job on the side, so my budget was slim and this was a huge chunk of money for me. But, I knew it was a good price, and I knew I wanted it. I had to pay a very random 10€ to customs when it arrived, but that was it. My dream bag was mine for a total of €560!
Fast forward to about 12 years later, I still have this bag (I once sold it when I needed money and later bought that exact same bag again, but that’s another story). When I bought it, I expected it to keep its value, but I had no idea it would increase as much as it has. Currently it’s worth around €4000!
I have worn it, however sparingly and lovingly, but even though it’s more used now, and even though I won’t sell this particular bag, in theory my money has literally increased more than 7-fold. How amazing is that?!
At this point in my life, I have several similar stories about bags increasing in value, and in many cases I have actually sold them for a lot more than I paid. So, what is the key to this process?
One, is that you buy smart, which in this case means you buy vintage. When you buy a new bag at current prices, the price is so high already, that it would take a long time for you to be able to actually sell with a profit (unless you have a very rare and sought after bag, like for example a brand new Birkin).
When you buy vintage, at a good price, you are already ahead. For example, a Chanel classic flap in medium size will now cost you around €9500 in stores. Yes, the prices will probably go up more (and fast too), but imagine how much more profit you can make when you buy the exact same model, but an older one, for around €5000? That’s already a big chunk of money saved!
Second, is that you have to look for quality and condition. It’s a known fact that for example in Chanel bags, quality was much better back in the day, like let’s say in the ‘90s or 00’s.
You can find a well preserved bag from that era that is essentially much better and nicer quality than one you would buy in stores right now, ànd it will cost you much less. Amazing, right?
Ofcourse, it’s important to also KEEP your bag in good condition once you have it, but that is something I’ll elaborate on in another blog post.
Third thing is, you don’t want to waste too much time. Honestly, buy as soon as you can! This is not advice you’ll hear very often, and it goes against what most ‘responsible’ people would say, but lucky for you guys I’ve never been anywhere near responsible with money and I have tried and tested this theory so you don’t have to ;-)
The truth is, that bag prices go up so quickly, that it just doesn’t pay off to wait for the ‘perfect’ moment. Many times I have spent my last euro’s on a bag, and I’ve never regretted it in the end. (disclaimer: although I’ve been ‘broke’ many times, I am definitely privileged and never had to worry about a roof over my head or food on my table. If this is your situation, than you should probably work on other things first!)
If the bag is a really good deal, you could probably sell it for more right away in case you really need to. And, if you choose to wait, a few years from now you’ll be wishing you hadn’t when you see the prices go up and up and up!
Now, obviously it also matters which bag you buy.
Classic Chanel bags always work, just as Hermes Birkins & Kelly bags. Louis Vuitton classics like the Speedy also show a nice return on investment.
So is it only the classics? Well, no.
A very special or limited edition bag can also make you money, but this will be way more dependant on trends. For example, the Louis Vuitton Multicolore bags used to be pretty ‘cheap’ on the resale market, because they are an acquired taste and definitely not for everyone.
But, all of a sudden a few Kardashians were spotted with the Nano Speedy in Multicolore, and this sparked a whole Y2K-trend, causing prices to go up tremendously. These Nano’s went from being around €400 second hand, to prices in the €2k range.
Similar things have happened with Dior Saddle bags, where Dior re-issued the Saddle, causing the vintage ones to all of a sudden be in demand again as well. There was a time where these Saddles would barely sell even for around €500, and now you’ll easily pay over €1500 for a vintage model again.
So, if you want to play it safe, invest in a classic bag. If you’re up for a riskier game, and you have the time to wait for something to be trendy again, play around with some limited editions!
One very important point, although it goes without saying, is that only authentic bags are good investments. Either be willing to do your research very thoroughly, buy from a person or shop that you trust, or make sure you ask for an expert opinion before buying. A fake bag will never be worth anything, regardless of how much or how little you pay for it.
Lastly, although this is something I personally do not care much about, it’s always interesting to buy bags that come with original accessories. Boxes, dustbags, authenticity cards, original receipts; they all add value in case you want to resell. My personal preference is usually to get a better deal for a bag that doesn’t have any extra’s, but many of my customers will happily pay more for those that do.
Now, I’ve given you the most important pointers (in my opinion) as to what you should look for in a bag, investment wise.
Next, let’s talk strategy!
Like mentioned above, although counter intuitively, it actually makes sense to start with the most expensive bag you’re looking to buy. A more valuable bag will, naturally, also increase the most in value. Once you have bought this bag, simply wait, use it gently, and watch it increase in value!
Another strategy, that probably feels a bit more safe, is to buy a less expensive bag and to ‘flip it’. For example, a Balenciaga City bag is a bag that you can find on the secondary market for a few hundred euro’s these days. If you’re willing to search high and low, it’s possible to find a really nice one in a beautiful colour and in good condition. Then, it’s a matter of finding the right buyer who’s willing to pay a bit more for it. Re-invest the money you make in a slightly more valuable bag, like for example a Saint Laurent or vintage Dior bag, and repeat. Work your way up, and at some point the best bags in the world will be within your reach!
This is essentially what I did and how Baghag started. Needless to say I’ve had hundreds of really nice bags by now, and made many other people happy by selling them when I moved on to the next. If that’s not a win-win, I don't know what is!
Now, I would like to finish by saying, above anything else, buy what you LOVE. Making money is great, but owning something that makes you smile or swoon every time you see it, is honestly priceless in my opinion. And, if something would ever happen, like a market crash (I can't imagine, since women will ALWAYS wear bags, but I guess we never really know), at least you have something you want to wear yourself.
To me personally, my bag collection brings me a lot of joy. It’s a travel through time and trends, a little museum-like tribute to quality and designer fashion, and the fact that it goes up in value is a massive bonus.
As the infamous Carrie once said in Sex and the City; I like my money right where I can see it… Hanging in my closet!
xoxo
Baghag
